USDA vs. FHA vs. Conventional

USDA is up to 102% Financing of the APPRAISED Value of the home NOT the purchase price! There is a 2% up front Funding Fee that they charge but even though you are over 80% loan to value they do not charge a monthly mortgage insurance premium (PMI).You can only finance your primary residence through USDA no second homes or investment properties and the rates are great! USDA also has income limits and property limits, it MUST be in a Rural area such as Hernando County. USDA is my preffered way. FHA is a government loan that normally requires 3.5% down payment, 1.75% up front mortgage insurance fee and a .55 %monthly mortgage insurance premium (PMI). They also have good rate and only allow you to finance your primary residence, so no second homes or investment properties. Last but definately not least is Conventional. Conventional normally requires a 5% down payment but considering that ALL of Florida is a declining market they know it down another 5% so it is actually a 10% down payment. There is a monthly mortgage insurance premium if you do not put down 20% and it's on average about .56 monthly added to the payment with good credit a little higher if your scores are under 700. The thing I like about Conventional is if you have good scores and credit they reward you for it with GREAT interest rates, better then FHA and USDA as you can see below. You can also finance a primary, second or investment property through Conventional.

Daily Rates

Conventional 30 Yr. Fixed Rate: 4.875%*

FHA 30 Yr. Fixes Rate: 5.250%**

USDA (100%) 30 Yr. Fixed Rate: 5.250%***

*Based on a 150K sale price with 10% down and APR of 5.865%

**Based on a 150K sale price with 3.5% down and an APR of 6.362%

***Based on a 150K sale price and 153K loan amount and APR of 5.649%